Canadian flag in front of the beautiful city of Vancouver, Canada.
Canada is one of the most popular countries for immigration. In light of a possible Trump presidency, more and more people are threatening to leave the US for Canada. Still, there are also over 1.5 million Canadians living and working abroad.
As with most expats who work abroad, Canadians need to understand the laws concerning taxation on their foreign-earned income.
Canada is a little more moderate than the United States when it comes to taxing its offshore citizens and residents. In fact, Canadian tax courts are known to be more flexible. During the contestation process they consider each case on its individual merits.
Canada uses a “hybrid tax system“, a combination of territorial taxation and taxing on worldwide income. Consequently, it is important to understand the nuances of the system. While most Canadians expect to be taxed on their worldwide income, there are exceptions.
For instance, consider the story of David, a foreign-born Canadian resident who had to return to his home country to take care of his aging parents. While his immediate family lived in Canada, David lived abroad to see after the daily needs of his parents. While living in his country of citizenship, David took on a part time job. And — even though he earned his income abroad — he paid Canadian income taxes each year.
One day, however, his wife read an article from the local Canadian expat community. The article explained that, in some cases, income earned abroad could qualify for Canadian tax exemptions. To make a long story short, their situation was one of those cases and David was able to exempt his foreign-earned income.
Source: http://nomadcapitalist.com/
Comments
more recommended stories
Ancient Aztec Temazcal uncovered by archaeologists in Mexico City’s La MercedAccording to BBC, an ancient “sweat.
Migrant Caravan and Guardia Nacional clash at the Mexico-Guatemala borderHundreds of Central American migrants who.
Snakes could be the original source of Coronavirus outbreak in ChinaSnakes—the Chinese krait and the Chinese cobra—may.
Katerina Sakellaropoulou becomes Greece’s first woman presidentAthens, Greece (CNN)High court judge and.
In addition to the coronavirus, Brazil reports another deadly threat: the arenavirusAuthorities admit one death from hemorrhagic.
Mexico drowns in its violence35,588 people were killed In Mexico,.
AMLO is proposed to become governor or senator as his term endsTABASCO (Times Media Mexico).-This Tuesday, January 21,.
Almadía, a gastronomic experience that fuses sea and land in ProgresoAlmadía is located in a charming.
More than 300,000 septic tanks contaminate Merida’s aquiferExperts say Merida’s phreatic mantle is.
How to dress a toddlerIt seems that all the difficulties.
Leave a Comment